Brazil boosts diesel subsidies, cuts fuel taxes amid oil rally
The measures include a one-real-per-liter diesel subsidy and 30 days of tax cuts on ethanol and gasoline imports and sales, officials said.
- On Wednesday, President Luiz Inacio Lula signed an executive order allocating 6.6 billion reais for fuel subsidies as a gasoline subsidy expired, providing 5.6 billion reais for diesel and 998 million reais for production and imports.
- Global crude prices surged after Israel and Iran began conflict in late February, halting most shipping through the Strait of Hormuz; Brent crude futures breached $100 a barrel on Wednesday for the first time since July.
- According to Ita BBA market analysis, Brazilian diesel is 28% cheaper than international prices while gasoline is 21% cheaper. Tax cuts on ethanol and gasoline blends take effect for 30 days starting Sept 10.
- Ahead of the October election, President Luiz Inacio Lula seeks to cushion consumers against higher fuel costs while preventing trucker strikes that could spike food inflation, facing challenger Flavio Bolsonaro, son of Former President Jair Bolsonaro.
- Although Brazil is a major producer and exporter of crude oil, revenues have surged this year due to higher international prices. The government continues extending price control policies introduced at the conflict's start.
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44 Articles
Lula cuts Brazil fuel taxes ahead of election as war drives oil above $100
Lula signed tax cuts and a diesel subsidy to reduce fuel prices before Brazil's October election. The move aims to soften the impact of war-driven oil prices, though economists see a strong electoral motive.
My Mother Lode
The Seattle TimesBrazil’s Lula signs measures to cut fuel taxes and subsidize diesel ahead of election
RIO DE JANEIRO (AP) — Brazilian President Luiz Inácio Lula da Silva signed a decree and a provisional measure Wednesday aimed at lowering fuel prices, weeks ahead of the presidential election and as the U.S.-Iran war drives up the cost of filling the tank. The cost of fuel is a particularly sensitive issue for voters,...
Associated Press News
Brazil's Lula signs measures to cut fuel taxes and subsidize diesel ahead of election
Brazilian President Luiz Inácio Lula da Silva has signed measures to lower fuel prices, just weeks before the presidential election. This move comes as the U.S.
Lula Cuts Fuel Taxes as Oil Prices Rise Ahead of Brazil Election
Brazil’s Luiz Inácio Lula da Silva announced additional cuts to fuel taxes in a bid to shield consumers from the impact of surging oil prices just weeks before the country’s presidential election.
President Luiz Inácio Lula da Silva signed, on Wednesday (9), a decree that reduces by R$ 0.63 the PIS/Passep and Cofins aliquots on the litre of gasoline and that zeros the taxes on hydrated ethanol. In addition, it signed a provisional measure (MP) authorizing the Union to grant economic subsidies to producers and importers of diesel oil for road use of R$1.00 per litre. The decree reduces, between 10 September and 5 October, the PIS/Passep an…
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